GREATER HARTFORD TRANSIT DISTRICT DISADVANTAGED BUSINESS ENTERPRISE PROGRAM GOALS/METHODOLOGY FISCAL YEAR 2014, 2015 and 2016 Draft, May 2013
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1 BACKGROUND GREATER HARTFORD TRANSIT DISTRICT DISADVANTAGED BUSINESS ENTERPRISE PROGRAM GOALS/METHODOLOGY FISCAL YEAR 2014, 2015 and 2016 Draft, May 2013 Pursuant to 49 Code of Federal Regulations Part 26 (49 CFR 26), the US Department of Transportation requires that recipients of federal funding assistance of at least $250, establish a Disadvantaged Business Enterprise (DBE) Program. The Greater Hartford Transit District, as a recipient of USDOT funding, intends to comply with this requirement and plans to discuss its goals and goal-setting methodology, as contained in this document, at a workshop with potential DBE contractors. PROPOSED GOAL FOR FY 2014 through 2016 The District has established an overall goal of DBE participation for FY 2013 on U.S. Department of Transportation (USDOT) Federal Transit Administration assisted contracts. The projects that the District expects to receive USDOT funding and that have a DBE contracting opportunity during the next three fiscal years account for approximately $43,130,000 of which $2,587,800 is projected for DBE participation, for an annual goal of 6%. METHODOLOGY STEP 1 BASE FIGURE DETERMINATION The base figure is intended to be a measurement of the current percentage of businesses that are DBEs. In order to ensure that this figure is based on demonstrable evidence of the relevant market conditions, the number of DBEs that are ready, willing and able to compete for federally-assisted projects have been identified and divided by all firms that are also considered ready, willing, and able to bid for the types of work contemplated to be funded this year. This calculation is based upon the type of work that the District will undertake over the next three fiscal years. THE NORMAL MARKET AREA A Normal Market Area is based on two factors: where the majority of all firms (DBE contractors/subcontractors and the non-dbe contractors/subcontractors) are located with whom the District does business, and where the majority of the contracting dollars are spent by the District on FTA assisted projects. For purposes of this methodology, the State of Connecticut is the location of the majority of firms with which the District does business, and where the majority of contracting dollars are spent. In terms of current certification in the State s DBE directory, DBE firm certification is achieved under the State of Connecticut Department of Transportation (Conn DOT) 1
2 Unified Certification Program. The firms certified in the Conn DOT directory are a representation of actual availability of DBE and DBE-eligible firms in the normal market area. DISTRICT S FISCAL YEAR 2014, 2015 and 2016 PROJECTS The District identified the FTA assisted contracts for Fiscal Year They are as follows: PROJECT DESCRIPTION/CONTRACTING OPPORTUNITY PARATRANSIT SOFTWARE Design services, hardware, installation software ROLLING STOCK: DO NOT INCLUDE IN ESTIMATION OF DBE GOAL Vehicle purchase-paratransit, supervisory vehicles, professional services UNION STATION General Construction Signage ITS Other building renovations,including transit center Masonry - Brownstone Repair PARATRANSIT FACILITY A&E Services General Construction Grounds/parking/drainage MANSFIELD A&E Services General Construction Construction: Roadway related ENFIELD - ITC Acquisition A&E services Construction HARTFORD A&E Services TIGER Union Station bus livability Sigourney St. bus livability Construction (roadway related) TIGER Union Station bus livability Sigourney St. bus livability Please see Attachments for additional project description information. 2
3 STEP ONE: BASE FIGURE The Base Figure is an estimation of the relative availability of DBE contractors for the type of work anticipated over the next three years. This is calculated through the following process: 1. Identify the North American Industry Classification System (NAICS) codes for each type of work the District anticipates it will undertake with FTA funds in the next three fiscal years. 2. Identify the total number of firms available in the base market area (the state of Connecticut) for each NAICS code. This information was obtained from the 2007 Economic Census (the most recent year available.) 3. Identify the number of DBE contractors and subcontractors ready, willing, and able to do business by each NAICS code number identified in task 1 above. This information is obtained from the state wide DBE directory published by the Connecticut Department of Transportation. 4. Estimate the relative availability of DBE contractors for each type of work by totaling the number of DBE firms available for each project type and dividing by the total number of firms available for each project type. 5. Determine the relative weight of each type of work, based upon expenditure per type of work divided by total FTA expenditures expected in the next three years. 6. Multiply the relative weight by the relative availability for each project type, sum the results, to get the base figure. Attachments 1 and 2 present the results of the above process. The resulting base figure is 3.07%. STEP 2: ADJUSTMENTS In this step, a review of various types of available information about contracting activity was undertaken to determine whether an up or down adjustment from the Base Figure was needed. 1. Remove any project types from consideration, which do not have any DBE firms available. All the project types which are anticipated for the next three years, do have DBE firms available for the work, so no projects were eliminated. 2. Consider the District s historic utilization of DBEs. The median value for DBE participation for Fiscal Years 2009, 2010, 2011, and 2012 is 9.53%. USDOT guidance suggests that the historic median be averaged with the base figure (3.07%) to adjust the goal. This results in an adjustment to 6.3%. 3. Consider evidence of past discrimination. There are no disparity studies available for the state of Connecticut documenting past discrimination which could be used for this adjustment. 3
4 This results in an adjusted DBE Goal of 6% or $2,587,800 for fiscal years 2014 through Please see Attachments for additional information. CALCULATING RACE/GENDER NEUTRAL SPLIT In determining the level of potential race-neutral participation, the District reviewed past performance against the DBE goal and looked at historic levels of race/gender neutral participation: DBE GOAL DBE PERFORMANCE DIFFERENCE RACE NEUTRAL FY % 12.90% 3.90% 4.38% FY % 4.96% -2.04% 2.06% FY % 6.16% 1.16% 2.44% FY % 18.42% 10.42% 11.68% The median value for the variation between goals and actual performance is 2.53%. The median value of the historic level of race neutral performance is 3.41% Taking the average of these two figures, gives a result of 3%. Therefore, the District is assigning 3% as race neutral participation and 3 % as race conscious DBE participation. The District will meet the maximum feasible portion of its overall goal by using raceneutral means of facilitating DBE participation. The District will use the following race-neutral means to increase DBE participation: Arrange solicitations, give date and times for the presentation of bids, quantities, specification, and delivery schedules in ways that facilitate DBE, and other small businesses, participation; Provide technical assistance and other services upon request; Conduct informational and communication workshops on contracting procedures, attend pre-bid and pre-construction meetings on specific contract opportunities(e.g., ensuring the inclusion of DBEs and other small businesses on mailing lists for bidders); ensuring the dissemination of information, such as providing a list of subcontractors to bidders on prime contracts; Distribute the Conn DOT DBE directory information, to the widest feasible potential prime contractors. The District will adjust the estimated breakout of race-neutral and raceconscious participation as needed to reflect actual DBE participation. The District will track and report race-neutral and race-conscious participation separately. For reporting purposes, race-neutral DBE participation includes, but is not necessarily limited to, the following: DBE participation through a prime contract a DBE obtains through customary competitive procurement procedures; DBE participation through a subcontract on a prime contract that does not 4
5 carry a DBE goal; DBE participation on a prime contract exceeding a contract goal; PROCESS After developing this draft goal, the District will participate in a DBE task force meeting hosted by the Connecticut Department of Transportation on June 28, 2013, at 8:30 am at the CTDOT. The DOT will send a notice of this meeting to all certified DBE contractors in the state. The DOT will include an agenda item for the District s draft program, enabling the District to present its draft goals and to discuss the types of work planned for the next three fiscal years. This draft report will be made available to the meeting attendees. Following the June 28 meeting, the District will amend this draft report and the draft goal, as necessary, based upon the input received at the meeting. This final goal will then be published on the District website and then submitted to the Federal Transit Administration. The District is required to submit its overall DBE goal to FTA on August 1 of each year, except in cases where a Federal Transit Administration recipient submits a specific project goal. CONTRACT GOALS The District will use contract goals to meet any portion of the overall goal that cannot be met using race-neutral means. Contract goals are established so that, over the period to which the overall goal applies, they will cumulatively result in meeting any portion of the overall goal that is not projected to be met through the use of race-neutral means. The District will establish contract goals on those FTA assisted contracts that have subcontracting possibilities. The District is not required to establish a contract goal on every such contract, and the size of contract goals will be adapted to the circumstances of each such contract (e.g., scope of work, location of work, and availability of DBEs to perform the particular type of work). The District will express its contract goal as a percentage of the total amount of FTA assisted contracts. 5
6 GHTD DBE PROGRAM FY ATTACHMENT 1 NAICS DESCRIPTION TOTAL FIRMS CT DBES DESIGN SERVICES, HARDWARE, INSTALLATION computer and peripheral equipment merchants Custom computer programming services other computer related services relative availability of DBEs SOFTWARE Custom computer programming services other computer related services relative availability of DBEs TRADES TO INCLUDE IN GENERAL OR BUILDING CONSTRUCTION commerical and institutional building construction Water and Sewer Line and Related Structures Construction Poured Concrete Foundation and Structure Contractors framing contractors Mansory contractors glass and glazing contractors Roofing contractors Electrical Contractors and other Wiring Construction Plumbing HVAC contractors Drywall and insullation contractors Painting and wall covering contracotrs Flooring contractors Other building finishing contractors Millwork (including flooring) Elevator and Moving stairway Lumber, plywood, millwork and wood panel merchant wholesalers Brick, stone, and related construction material merchant wholesalers Roofing, siding, and insulation material merchant wholesalers Other construction material merchant wholesalers Plumbing and heating equipment wholesalers AC and Heating equipment wholesalers Trucking, specialized freight, local relative availability of DBEs SIGNAGE ITS Sign manufacturing computer and peripheral equipment merchants Electrical Apparatus and equipment, wiring supplies, and related equipment merchant wholesaler relative availability of DBEs BROWNSTONE/MASONRY REPAIR Masonry contractors Other foundation, structure building exterior contractors Brick, stone, and related construction material merchant wholesalers Trucking, specialized freight, local relative availability of DBEs AE SERVICES Architectural services Engineering services relative availability of DBEs TRADES TO INCLUDE IN SITEWORK, GROUNDS, PARKING, DRIVEWAY Water and Sewer Line and Related Structures Construction site preparation contractors Trucking, specialized freight, local relative availability of DBEs TRADES TO INCLUDE IN ROADWAY CONSTRUCTION Poured Concrete Foundation and Structure Contractors site preparation contractors Trucking, specialized freight, local relative availability of DBEs REAL ESTATE ACQUISITION SERVICES Offices of Lawyers relative availability of DBEs
7 GHTD DBE PROGRAM FY ATTACHMENT 2 BASE FIGURE PROJECT DESCRIPTION/CONTRACTING OPPORTUNITY FY 2014 FY 2015 FY 2016 TOTAL COST WEIGHT RELATIVE AVAILABILITY WEIGHT X AVAILABILITY PARATRANSIT SOFTWARE Design services, hardware, installation $0 $200,000 $200,000 $400, software $0 $50,000 $50,000 $100, ROLLING STOCK: DO NOT INCLUDE IN ESTIMATION OF DBE GOAL $1,540,000 $2,438,000 $1,278,000 $5,256,000 Vehicle purchase-paratransit, supervisory vehicles, professional services UNION STATION General Construction $0 $500,000 $500,000 $1,000, Signage ITS $500,000 $500, Other building renovations,including transit center $1,800,000 $1,800, Masonry - Brownstone Repair $350,000 $350, PARATRANSIT FACILITY A&E Services $750,000 $250,000 $1,000, General Construction $835,000 $4,100,000 $4,100,000 $9,035, Grounds/parking/drainage $700,000 $700,000 $1,400, MANSFIELD A&E Services $200,000 $0 $0 $200, General Construction $500,000 $2,000, Construction: Roadway related $950,000 $2,000, ENFIELD - ITC Acquisition $150,000 $150, A&E services $300,000 $300, Construction $1,000,000 $1,000, HARTFORD A&E Services TIGER $1,680,000 $1,680, Union Station bus livability $115,000 $115, Sigourney St. bus livability $250,000 $250, Construction (roadway related) TIGER $14,800,000 $14,800, Union Station bus livability $2,800,000 $2,800, Sigourney St. bus livability $2,250,000 $2,250, TOTAL CONTRACTING OPPORTUNITIES (NOT INCLUDING VEHICLE PURCHASES) $7,820,000 $30,188,000 $7,828,000 $43,130, TOTAL DBE CONTRACTING OPPORTUNITIES $1,323,871 7
8 GHTD DBE PROGRAM FY ATTACHMENT 3 PAST PERFORMANCE DBE GOAL DBE PERFORMANCE DIFFERENCE RACE NEUTRAL RACE CONSCIOUS FY % 12.90% 3.90% 4.38% 8.52% FY % 4.96% -2.04% 2.06% 2.90% FY % 6.16% 1.16% 2.44% 3.72% FY % 18.42% 10.42% 11.68% 6.74% Determine Median DBE Performance: 4.96% 6.16% 12.90% 18.42% Adjustement: Step 1 Calculation: 3.07% add median for FY 2009 through % Total 12.60% Divide by 2 for average 6.30% average = 9.53% ADJUSTED FIGURE Race neutral calculation determine median of degree to which goals have been exceeded: alternatively, look at median of race neutral performance: -2.04% 1.16% 3.90% 10.42% 2.06% 2.44% 4.38% 11.68% average = 2.53% average = 3.41% averaging the two 2.97% RACE/GENDER NEUTRAL GOAL 8
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